While mining pools suddenly begin to move large amounts of BTC on exchanges, data shows that the 5% contraction of Bitcoin (BTC) in a single day has caused major changes for miners.
The CryptoQuant on-chain monitoring resource reveals that the day of September 2 witnessed a peak in releases for several major mining pools.
CryptoQuant predicts a “war” for BTC’s bull market
Looking at three mining pools (Poolin, Slush and the now defunct HaoBTC), Wednesday’s total outflows reached BTC 1,630 ($18.5 million).
The figure exceeds those recently recorded, and it occurred while BTC/USD was rapidly losing levels close to $12,000.
Comparison of mining pool outflows
According to Ki Young Ju, CEO of CryptoQuant, miners could seize the opportunity to control the competition now that The News Spy is at substantially higher levels than most of 2020.
“I think we’re going to see a war between the miners who want a bull run and those who try to stop it,” he explained to Cointelegraph in a private conversation.
“As far as I know, some Chinese miners are satisfied with their current profitability (return on investment) and may try to prevent new competitors from entering the industry as a result of the bull market.
Although the outgoing currencies have probably arrived on the exchanges, the danger of a sell-off caused by falling prices remains minor, continued Ki. “Miners are experienced traders,” he added. “I think they’re just looking for sales opportunities, not capitulation.
Fundamentals remain close to record highs
Miners are no stranger to price-driven transfers, which supports CryptoQuant’s argument. In May, immediately after halving, similar behavior was observed, leading to price volatility.
As Cointelegraph reported earlier this week, network fundamentals continue to underline the optimism among participants, with hashrate and difficulty near historical highs.
At the time of writing, estimates indicate that the next adjustment of the difficulty, expected in four days, will reduce it by an almost imperceptible 0.13%.